- Prospect Resources (PSC) is close to finalising the sale of its Penhalonga Gold Project in Zimbabwe and Mozambique
- Luzich Resources agreed to buy the gold asset from PSC almost a year ago, handing over a US$200,000 (A$268,560) deposit
- It’s now handed over another US$200,000 (A$268,560) with plans to pay the remaining US$550,000 (A$738,160) once the sale is complete
- PSC plans to use the funds from the gold project sale to advance its Arcadia Lithium Project in Zimbabwe
- Shares in Prospect Resources are up 1.41 per cent at 36 cents per share
Prospect Resources (PSC) is close to finalising the sale of its Penhalonga Gold Project in Zimbabwe and Mozambique.
The company agreed to sell the gold asset to Luzich Resources, an affiliate of Las Vegas investment firm Luzich Partners, almost a year ago.
Luzich Resources handed over a US$200,000 (A$268,560) deposit in October last year as part of the deal, before carrying out due diligence.
PSC today advised Luzich has paid another US$200,000 (A$268,560) as part of the original sale agreement.
The buyer will pay the remaining US$550,000 (A$738,160) within 30 days of the completion of the sale and purchase agreement.
Prospect Resources plans to use the funds from the gold project sale to advance its Arcadia Lithium Project in Zimbabwe.
The flagship project is described by the company as being a globally significant hard rock lithium resource.
PSC is planning to produce petalite and spodumene concentrates in the near-term, with a petalite offtake agreement signed.
When the gold asset sale was first announced in October 2020, Managing Director Sam Hosack said PSC would use its non-core assets to progress Arcadia.
“Prospect is focused on maximising shareholder value by rapidly progressing the Arcadia Lithium Project and extracting value from its non-core assets.”
Shares in Prospect Resources were trading 1.41 per cent in the green at 36 cents per share at 11:23 am AEST.